Canary Capital filed with the SEC to launch a spot PEPE ETF that would hold the Ethereum-based meme coin directly, issue/redeem shares in 10,000-unit baskets, and may retain up to 5% in ETH for on‑chain fees; listing exchange, pricing benchmark and custodian were not disclosed. Market response is muted: cumulative net inflows for meme coin ETFs total $7.64M as of Apr 8, combined daily volume ~ $209K, and PEPE trades near $0.000000348 (−5.59% 24h); Dogecoin remains the only meme coin with active US ETFs on major exchanges. Canary is expanding its crypto ETF pipeline (previous Mog Coin filing in Nov 2025; Pudgy Penguins, Axelar), signaling regulated‑market adoption and fundraising interest in niche tokens, but near‑term market impact and token demand appear limited.

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Canary Capital Group has moved to expand the meme coin investment space through a new ETF filing. The firm aims to provide direct exposure to PEPE through a structured product. The proposal reflects a growing push to bring niche digital assets into regulated markets. However, early signals show limited investor reaction to the development.

Canary Targets Direct Exposure to PEPE

Canary Capital Group confirmed in a filing with the U.S. Securities and Exchange Commission that it plans to launch an exchange-traded fund tracking PEPE Coin. The proposed Canary PEPE ETF would hold the Ethereum-based meme coin directly. The structure mirrors existing spot crypto ETFs already in the market.

The filing states that the Trust seeks to track the price of PEPE, while accounting for operational costs and liabilities. The fund would issue and redeem shares in baskets of 10,000 units. However, Canary did not disclose the listing exchange, pricing benchmark, or custodian.

The prospectus outlines that up to 5% of assets may remain in Ethereum to cover transaction fees. The firm clarified that it will not hold Ethereum for investment purposes. Instead, the allocation supports operational efficiency on the blockchain network.

Canary has continued to expand its crypto ETF pipeline. The firm previously filed for a Mog Coin ETF in November 2025. It also submitted applications tied to Pudgy Penguins, Axelar, and other digital assets.

Weak Demand Persists Across Meme Coin ETFs

Market data suggests that investor appetite for meme coin ETFs remains limited. Dogecoin currently stands as the only meme coin with active ETFs in the United States. Products from Grayscale, 21Shares, and Bitwise trade on major exchanges, including NYSE and Nasdaq.

Despite these launches, inflows remain modest. Data from SoSoValue shows cumulative net inflows reached $7.64 million as of April 8. Combined daily trading volume across the funds stood near $209,000.

The muted demand raises questions about the broader appeal of meme coin ETFs. While asset managers continue to file new products, market participation has not kept pace.

Meanwhile, PEPE’s price showed little reaction to the filing news. The lack of movement reflects cautious sentiment among traders despite ongoing ETF developments. Canary’s latest move highlights continued experimentation within the crypto ETF space. Still, current data suggests adoption may take time to build.

At the time of writing, PEPE is trading at around $0.000000348, down by 5.59% in the past 24 hours.

Read the article at Coinpaper